SASOL Ltd., the South African chemicals and fuel maker, called off a potential $2 billion share sale and announced first-half profit more than tripled. The shares jumped to the highest in a year.
The company said it’s raised enough cash through asset disposals and cost savings to reduce debt and avoid a rights offer.
“A decision was made not to pursue a rights issue given the current macroeconomic outlook, and the significant progress made on our response plan initiatives,” Sasol said in a statement Monday. “The balance sheet deleveraging pathway will continue to be prioritized to ensure that we operate within our financial covenants.”
Speculation over a share sale began about a year ago amid fallout from Sasol’s Lake Charles project in Louisiana, oil prices at half their current levels, and Moody’s Investors Service’s decision to cut the company’s credit rating to junk.
The company has been reducing debt through
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